NEWS & VIEWS :: Investing Dollars in India
	Are you an NRI on a holiday looking around for some good deals in property? Do you have doubts over what you can and cannot do? Here's help. You cannot buy agricultural land. Except for that, you can invest in any property of any size. There is no cap to your investment in property. You may also buy any number of properties, accross the country. No cap here too. If you ever want to take back your monies by selling property, there are two caveats: you cannot take back any profit you make on the sale; and you will have to cough up capital gains tax, just like the resident mortals. You may use your FCNR (B) account with the bank or your NRE account to remit money to India. If you want ot take back the sale proceeds (less profit), you need to inform the RBI within 90 days from the date of sale on Form No. IPI 8. Of course, you may rent out the property if you so wish. No question will be asked. Remember, your rental income will be taxed. These are only a few basic rules. There are other concerns as well. If you are investing in a flat in a city, check the local rules before signing the deals. For instance, the builder should convince you that he has the necessary permission to construct the building. The floor in which your flat is located should have been permitted by the muncipial corporation. Cheating is quite common here. The builder should get you the all-imporant 'occupation certificate'. If not, you will cought up huge fines for water connection and property tax. If you are buying a flat from an existing owner, see to it that all the dues on the flats, including the home loan and all the outstanding dues towards the cooperative society have been cleared. You should also check it there are disputes over ownerships. If it involves a big sum, interest an advertisement in a newspaper inviting objections to the purchase. Also make sure that there are no tax dues on the flat. You will have to clear unpaid tax dues later, probably with huge fines. As Published in Times of India on 21st January 2005